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Salesforce Joins Google, Intel In Tech Layoff Wave: ‘AI Now Does 30–50% of the Work,’ Says CEO Marc Benioff

Salesforce Joins Google, Intel In Tech Layoff Wave: ‘AI Now Does 30–50% of the Work,’ Says CEO Marc Benioff

Salesforce CEO Marc Benioff has made a striking revelation: artificial intelligence now performs between 30% and 50% of the work at his company.

Speaking on Bloomberg’s The Circuit with Emily Chang, Benioff pointed specifically to job functions like software engineering and customer service as areas where AI has taken over a significant portion of the workload.

“AI is doing 30% to 50% of the work at Salesforce now,” Benioff told Bloomberg, adding that the technology is enabling the company to hire fewer people.

The San Francisco-based software company, known for revolutionising CRM solutions in the early 2000s, is now positioning itself at the forefront of the AI transformation sweeping through Silicon Valley.

Salesforce is actively selling AI tools that claim to manage customer service tasks without human intervention—a product that Benioff said has reached 93% accuracy, even for large-
scale clients like Walt Disney Co.

“All of us have to get our head around this idea that AI can do things that before we were doing,” Benioff said. “We can move on to do higher-value work.”

Benioff’s statement aligns with a growing trend across the tech sector, where leaders are becoming increasingly vocal about AI’s labor-replacing potential. Microsoft CEO Satya Nadella and Alphabet CEO Sundar Pichai have both acknowledged that AI now produces about 30% of new code in some development projects.

The Flip Side of AI: Rising Layoffs in US Tech
While the benefits of automation and AI tools may excite shareholders and boost efficiency, there’s a visible downside: widespread layoffs across the US tech sector in 2025.

According to data from Layoffs.fyi, over 63,000 tech workers have been laid off this year across 147 companies—a brutal reminder of how fast the industry is pivoting.

Intel Begins Aggressive Restructuring
Intel Corp. has launched significant layoffs under its new CEO Lip-Bu Tan, filing a notice under California’s WARN Act to lay off 107 employees starting July 15. Reports suggest this is only the beginning: Intel may cut up to 20% of its factory workforce, shut down its automotive unit, and outsource marketing to Accenture.

In May 2025 alone, Intel laid off 6,000 employees, a staggering figure that underscores the depth of its transformation strategy.

Microsoft Eyes Fourth Round of Xbox Layoffs
Microsoft is also undergoing a fresh wave of job cuts, this time targeting its Xbox division. As per a report by Bloomberg, Xbox managers are preparing for a major round of layoffs next week, marking the fourth such round since 2023. This follows the company’s $69 billion acquisition of Activision Blizzard, a move that has since led to intense scrutiny over operational costs.

Already, 300+ employees have been let go in June, following another 6,000 layoffs in May. Microsoft is also offering voluntary buyouts across US teams as it aims to finish restructuring before the end of the financial year on June 30.

Bumble Slashes 30% of Workforce
The dating app Bumble Inc. has confirmed that it will cut 240 employees, roughly 30% of its global headcount, in a strategic move to realign operations. According to a company filing, Bumble plans to save $40 million annually and reinvest those funds into product and technology development.

While the company praised the contributions of its outgoing employees, it emphasized that the layoffs were part of a long-term plan to streamline and prepare for future growth.

Meta, Google, HP Join the List
The layoff wave isn’t limited to startups and mid-sized firms:
Meta cut over 100 roles from its Reality Labs division.
Google eliminated 200 sales and partnerships jobs while also offering buyouts to others.
Hewlett-Packard Enterprise announced plans to cut 2,500 jobs over the next 18 months.


Automation Rising, Workforce Shrinking
The central narrative emerging in 2025 is clear: AI is no longer a futuristic add-on—it’s core to operations. But with every gain in productivity, there is a human cost, particularly for mid- and entry-level tech workers.

Salesforce’s internal success with AI underscores this duality. On one hand, it presents a case study in efficiency and innovation. On the other, it raises uncomfortable questions about the future of employment, especially as AI tools grow more capable and accurate.

As Benioff put it: “We can move on to do higher-value work.”

But for thousands in tech, finding that “higher-value work” is the next big challenge.

Source – https://www.republicworld.com/business/salesforce-joins-google-intel-in-tech-layoff-wave-ai-now-does-3050-of-the-work-says-ceo-marc-benioff

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